There are decent month-to-month places with a pool for about $150 a month in Kuta or Denpasar. You can easily eat for $1-$2 in Kuta or Denpasar. Motorcycle driving is dangerous but cheap. I think $500 is enough for a basic lifestyle - $1k is quite a lot of money in fact outside tourist areas.
The cheapest place to live that's actually livable
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